A Fresh Green Wave Sweeps Across The Crypto Market: Here’s What It Means
The global crypto market is experiencing a wave of green with market speculators suggesting a new altcoin season is at our doorsteps. What is an ‘altseason’, you may wonder? This crypto lingo typically indicates a rally of alternative cryptocurrencies (altcoins) and a positive surge in their overall market capitalization. Let’s delve deeper into a few key signals that can help identify the commencement of an altcoin season.
Total Crypto Market Cap Hits 14-Month High
The total market capitalization of all cryptocurrencies recently reached a 14-month high, reflecting the bullish momentum pervasive in the market. This indicates the first cue to significant investor interest and buying in the cryptomarket. Analyzing the total market cap, excluding Bitcoin, we observe a springboard journey from $526 billion on Sept. 8 to $622 billion on Nov. 9. This surge indicates traders’ amplified interest in altcoins, checked by an increase in the prices of these coins.
Altcoins Show Multiweek Strength
Data from CoinMarketCap reveals impressive double-digit gains for the top 13 altcoins (excluding stablecoins) in the last thirty to sixty days. Ripple’s XRP, in particular, surged by 45% in the last two months, boosted by their multiple legal victories against the Securities and Exchange Commission. The murmur of an impending initial public offering (IPO) on Nov. 9 has further fueled this upward trend.
Over the past three months, Solana’s SOL has rallied significantly, shedding its ‘Sam coin’ moniker. The term ‘Sam coins’ refers to cryptocurrencies linked with Alameda Research, FTX, and Sam Bankman-Fried. The SOL price has surged by over 107%, thanks to continuous development and increased usage.
Chainlink’s LINK, much like SOL, has showcased an impressive 60-day return of over 100% thanks to consistent development and increased usage. Additionally, it posted 26% returns within six days.
Other Altcoins Show Notable Performance
Other noteworthy performances included those from BNB, Cardano’s ADA, Tron’s TRX, and Polygon’s MATIC, all of which generated double-digit gains in the preceding 60-day period. Overall, the performance of the altcoin market seems to align with an improvement in investor sentiment. This sentiment is measured by the Crypto Fear & Greed Index, which after beginning September on a fearful note, swung to greed by October 23 and has held its ground since.
What does this mean for the investment world? Is it truly the altseason? While the signs are there, it’s clear that enthusiasm is returning to the crypto market, and it advises caution. Remember, every investment move comes with a share of risk, and individual research is crucial before making any decisions. While the tides seem favorable currently, smart investing is about understanding the market and making well-informed decisions.